Attorney
General Peter C. Harvey Announces Indictment
of Atlantic County Transportation Contractor
Defrauds State of Approximately
$80,000

TRENTON
– Attorney General Peter C. Harvey
today announced that an Atlantic County
transportation contractor and his company
were indicted by a State Grand Jury for
filing false contract payment claims and
installing substandard crash guard devices
for the New Jersey Department of Transportation.
The charges in the seven count indictment
were brought by the Office of Government
Integrity.

“We
continue to aggressively investigate contractors
and companies who steal public money through
government contracts, particularly where
it puts public safety and health at risk,”
said Attorney General Harvey. “This
company installed substandard crash guard
devices on New Jersey highways which endangers
the safety of New Jersey and out of state
motorists.”

Tracy M. Thompson, Acting Director of
the Office of Government Integrity (OGI),
said that a State Grand Jury indictment
charged George R. Smith, Jr., 51, of Folsom,
and president of Statewide Hi-Way Safety
(SHS), Inc., with two counts of false
contract payment claims of government
contracts, two counts of false representation
for a government contract, one count of
theft by deception, one count official
misconduct by a corporate official, all
second-degree crimes, and one count of
unsworn falsification to authorities,
a fourth-degree crime. If convicted, Smith
could face up to 10 years in jail and
fines up to $150,000.

According to Thompson, the seven counts
of the Grand Jury’s indictment charge
that in March of 2004, Smith and SHS allegedly
submitted a false claim in excess of $25,000
for payment for performance of a contract
with the New Jersey Department of Transportation.
The indictment further alleges that Smith
and his company between 2001 and 2004,
derived a benefit of more than $80,000
for installing improper roadside crash
guard modules. The contracts required
SHS to replace damaged crash guard modules
with new Adiem™ brand modules. The
investigation revealed that in 2003, SHS
began repairing and later manufacturing
its own version of crash guard modules,
while continuing to bill NJDOT for the
Adiem brand.

“We
are committed to ensuring that our contracting
agencies get what they pay for and that
shady contractors are prosecuted to the
fullest extent of the law,” said
OGI Acting Director Thompson.

OGI State Investigator Robert Rich coordinated
the investigation, assisted by NJDOT investigator
Ken Mansfield and Special Agent of the
U.S. Department of Transportation Robert
Brautigan. Deputy Attorney General Tracy
M. Thompson presented the case to the
State Grand Jury.

The indictment was handed-up to Mercer
County Superior Court Judge Neil H. Shuster.
The case has been assigned to Mercer County
for trial. An indictment is merely an
accusation. The defendant is presumed
innocent unless or until proven guilty.